NASDAQ:NBIX: a strong growth stock preparing for the next leg up?.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether NEUROCRINE BIOSCIENCES INC (NASDAQ:NBIX) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but NEUROCRINE BIOSCIENCES INC has surfaced on our radar for growth with base formation, warranting further examination.

Growth Analysis for NASDAQ:NBIX

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:NBIX has received a 9 out of 10:

• NBIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 226.32%, which is quite impressive.
• NBIX shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 66.75% yearly.
• NBIX shows a strong growth in Revenue. In the last year, the Revenue has grown by 28.46%.
• NBIX shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 55.91% yearly.
• NBIX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 50.12% yearly.
• Based on estimates for the next years, NBIX will show a quite strong growth in Revenue. The Revenue will grow by 16.42% on average per year.

Evaluating Health: NASDAQ:NBIX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 7 for health:

• An Altman-Z score of 9.02 indicates that NBIX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of NBIX (9.02) is better than 88.81% of its industry peers.
• There is no outstanding debt for NBIX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• NBIX has a Current Ratio of 2.39. This indicates that NBIX is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.34 indicates that NBIX has no problem at all paying its short term obligations.

Profitability Insights: NASDAQ:NBIX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:NBIX was assigned a score of 8 for profitability:

• NBIX has a better Return On Assets (6.71%) than 96.33% of its industry peers.
• NBIX has a Return On Equity of 9.54%. This is amongst the best in the industry. NBIX outperforms 95.49% of its industry peers.
• NBIX has a better Return On Invested Capital (12.95%) than 97.16% of its industry peers.
• The last Return On Invested Capital (12.95%) for NBIX is above the 3 year average (12.37%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 10.71%, NBIX belongs to the top of the industry, outperforming 95.99% of the companies in the same industry.
• NBIX's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 19.50%, NBIX belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
• The Gross Margin of NBIX (97.82%) is better than 97.50% of its industry peers.

Why is NASDAQ:NBIX a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:NBIX exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

NBIX has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 110.80, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for NBIX in the last couple of days, which is a good sign.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of NBIX contains the most current fundamental analsysis.

Check the latest full technical report of NBIX for a complete technical analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.